MN Parents Could Get Up To $3K Per Kid Under DFL Bill

ST. PAUL, MN — The Democratic-Farmer-Labor Party is moving forward with a proposed refundable child credit worth up to $3,000 per dependent.

The credit would work similarly to the federal child tax credit that was in place through December of 2021 through the American Rescue Plan.

Under the bill in the Minnesota Legislature, parents would get $3,000 for each qualifying child ages 0-5 and $1,000 for each qualifying child ages 6-17. The credit would be phased out based on the taxpayer’s income.

In 2019, there were about 537,400 returns in Minnesota with eligible dependents, including:

• 406,800 dependents under 6
• 672,300 dependents 6 to 17

For the tax year 2023, about 573,300 returns with 1.1 million eligible dependents would claim an average credit of $3,209 per return, according to an analysis done by the state's Department of Revenue.

The state child tax credit is just one of the proposals included in the Democrats' omnibus tax bill unveiled on Monday.